New Zealand Dollar Forecast to Hit Fresh Lows
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NZDUSD - The ratio of long to short positions in the NZDUSD stands at 3.39 as 77% of traders are long. Yesterday the ratio was 1.85; 65% of open positions were long. Long positions are 23.2% higher than yesterday and 16.5% above levels seen last week. Short positions are 32.7% lower than yesterday and 33.3% below levels seen last week. Open interest is 3.6% higher than yesterday and 16.1% above its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the NZDUSD may continue lower. The trading crowd has grown further net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.
See next currency section: GBPJPY - British Pound Forecast to Appreciate versus Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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